BOJ’s Ueda warns of market turmoil if US defaults on its debt

TOKYO  – Bank of Japan Governor Kazuo Ueda said on Friday a U.S. debt default could trigger market turmoil, and will likely have a huge impact on the global economy.

“There’s a chance it would cause turmoil in various markets … and affect a vast array of financial transactions,” Ueda told parliament, when asked by a lawmaker of the impact if Washington fails to agree on extending the U.S. debt ceiling.

“The Bank of Japan will strive to maintain market stability based on its pledge to respond flexibly with an eye on economic, price and financial developments,” he said.

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